When a Company Pays Its Bill from a Plumber for Previous

question 3

Multiple Choice

When a company pays its bill from a plumber for previous services on account:

• A)Its debt to equity ratio always decreases.
• B)Its acid-test ratio always remains unchanged.
• C)Its current ratio always remains unchanged.
• D)All of the above are correct.

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Definitions:

Nationalizing Industries

The process by which a government takes control of private industries and transforms them into state-owned enterprises.

Social Security Act

A U.S. law enacted in 1935 that was designed to provide retirement income and assist the unemployed, as well as provide support for the disabled and families with dependent children.

Unemployment Compensation

A government program that provides financial payments to individuals who have lost their jobs through no fault of their own, as a means to alleviate financial hardship during periods of unemployment.

Francis E. Townsend

An American physician who was a prominent advocate for the elderly, known for proposing the Townsend Plan, a precursor to Social Security.